1. Describe three factors that would cause a company to continue doing business in traditional ways and avoid electronic commerce. Ans: Following three factors that can cause company to continue doing the business in traditional way & avoid electronic commerce:- a. Perishable foods.
b. High-cost items.
c. Unique items.
1. Choose one major difference between the first wave and the second wave of electronic commerce. Write a paragraph that describes this difference to a person who is not familiar with either business or Internet technologies.
Ans: The one of the major difference between first wave and second wave of e-commerce is online communication which makes the good relation with customers & support business relations. In first wave e-mail communication with customers used to be unstructured. In Second wave modified e-mail strategies which are integral to customer contact. It provides a filtered outcome so that customers can choose their product according to their choice. Thus it is a quite easy and attractive for customers to take advantage from such communication modes of second wave.
3. What are transaction costs and why are they important?
Ans: Transaction costs are the total costs a buyer and seller acquire while going through a transaction. Cost incurred while gathering information and negotiating purchase and sale transaction. Includes costs like brokerage fees and sales commissions and also the cost of information search and purchase. This is very essential to get an idea of cost of total transaction cost. That is the reason we need to figure out total profit which we earned from one complete transaction.
4. Provide one example of how electronic commerce could help change an industry’s economic structure from a hierarchy to a network.
Ans: One of the best examples of change an industry’s economic structure from hierarchy to a network is E-mail account. With electronic mail account it provides access to network of people. It will be very effective if e-mail account become a part of large network instead of small network. A large network e-mail account will add more value than single organisation e-mail just because of network effect.
5. How might managers use SWOT analysis to identify new applications for electronic commerce in their strategic business units?
Ans: Managers can have a close eye on Strengths, weaknesses, opportunities, and threats related to business by SWOT analysis and then consider all issues systematically. Managers first look into business unit (internal environment) and there they identify strengths and weaknesses. After that they focus on second part in which they review operating environment (external environment) and identify opportunities and threats presented. SWOT analysis helps managers take advantage of opportunities build on strengths and also to avoid threats and reimburse for weaknesses.
6. In about 200 words, explain the difference between language translation and language localization.
Ans: Language translation is very simple like translation content into another word language. On the other hand language location means not just translation of content in word but in local concept, saying and metaphors as well thus the whole content is translated and localized in a way that it becomes easier for locals to grasp the whole idea behind theory. Language localization still not replaced because it is a human process. That is why it is called very extensive process because of involving of human effort and experience. This is very effective way to communication to local society in term of effective communication.
1. In one or two paragraphs, explain the difference between a network access provider and an Internet service provider.
Ans: Internet service provider is the service provider of individual customers for example Optus and Vodafone etc. On the...